August 11, 2014€¦ · •Security: Segmented data and functional security ... OTM Configuration...

OTM 101 Chris Gumz – XPO Logistics OTM SIG User Conference Philadelphia, PA August 11, 2014

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Agenda

Introduction

Transportation Market

Oracle Transportation Management

Domain Structure

User Roles

Navigation

Master Data

Order Management

Transportation Planning

Transportation Execution

Freight Settlement

Business Intelligence

Lessons Learned

Q & A

2

Introduction

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XPO - One of the Largest 3PLs in North America

We facilitate over 31,000 deliveries per day

Serving over 14,000 customers in Retail, Food and Beverage,

Manufacturing, Commercial, Life Sciences, and Government industry

groups

#4 freight brokerage firm and Top 50 logistics company

#1 provider of last-mile logistics for heavy goods

#1 manager of expedited shipments

#3 provider of intermodal services

#1 provider of cross-border Mexico intermodal

International and domestic freight forwarder

Growing presence in managed transportation and LTL

Sources for rankings: Transport Topics, Journal of Commerce and company data

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Managed Freight Solutions

• Freight Analysis • Review of Customer Network • Consolidation Opportunities, Carrier Make-up, Optimal Routing, Packaging Opportunities, etc.

• Operational Process Analysis • Current and Future State Modeling • Automation Opportunities

• Onboarding Processes & Implementation • Standard & Measurable Onboarding Process • Adaptability to Customer Unique Environment

• Technology • Best-in-Class transportation management system (OTM) that is the engine of our offering • Flexible Integration mechanism adapts to multiple customer technology environments

• Managed Services • Dedicated experienced team of logistics professionals • Lean Principles uncovering continuous improvement opportunities

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XPO – High Level OTM Capabilities

Shipment Planning, Optimization, and Tendering

Electronic Integration with Customers and Carriers

Business Rule Customization

Both Carrier & Customer Business Configuration

Carrier and Rate Management

Transportation Order Management and Processing

Shipment Event Visibility

Freight Settlement

Exception Management

Operational and KPI Reporting

Internet Based Access

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Transportation Market

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Cost Reduction

• Shipment optimization

• Carrier sourcing

• Performance measurement

Operational Efficiency

• Process centralization

• Process standardization

• Process automation

Carriers Shippers Customers

Service Improvement

• Service / lead time optimization

• Supply chain visibility

• Event management

Logistics

Service

Providers

Business Growth

• Global operations platform

• Process enablement & flexibility

• Scalability

Transportation Management Benefits

TMS Benefits

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Transportation

Management

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Transportation

Management

Transportation

Operational Planning

Freight Payment,

Billing & Claims

Forwarding &

Brokerage Operations

Fleet Management

Transportation

Cooperative Routing

Transportation

Sourcing

Fusion Transportation

Intelligence

Logistics Inventory

Visibility

Global Trade

Management

Oracle Transportation Management (OTM) 12+ Years of Evolution into a Broad and Deep Platform

Oracle Transportation Management Modules

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• Business Logic: User interface, workflow, reports, integrations

• Security: Segmented data and functional security

• “Customization” via configuration

• Expand without having to buy another system

Business 2

Business n

Business 1

Top Level

Full Visibility

Domains

Partitioned

Visibility &

Functionality

Parent Company

Configure Software

for Specific Divisions / Lines

of Business

…

Supports Multiple Divisions/Lines of Business

Multi-Domain Architecture

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User Role/Preferences

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Navigation

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All OTM logins are in the form DOMAIN.USER

Ex. DEMO.CHRIS

User name should be entered this way on the login

screen

OTM will automatically capitalize user name

OTM Login

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OTM Home Screen

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OTM Help

OTM Help

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Business Monitor

Business Monitor

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FLVN Buttons

Many OTM fields feature a box of the letters F, L, V and

N besides the data entry field

F = Find or Search

L = List

V = View

N = New

These fields contain data that themselves are OTM

objects (i.e. contacts, shipments, locations)

The buttons allow you to either find or create new

objects for your use

FLVN Buttons

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Search Options

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Actions

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Master Data

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OTM Configuration Flow

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• A place where freight is picked up from, shipped to, or shipped via

• Customers, Suppliers, Warehouses, Pools, Cross Docks, Ports

Location

• Corporations are used to group and Organize locations Corporation

• Anyone that needs to be able to communicate with OTM

• OTM may be configured to automatically notify contacts when an event occurs (i.e. shipment delay)

Contact

• A company that provides transportation services for freight in OTM

• UPS, LTL/TL carriers, airlines, shipping lines, customs agents

Service Provider

General Master Data

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A location is a fixed node or point where cargo is shipping to, shipping from, or flowing

through

Locations

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A contact is a person or system to which you want to send notifications or tenders

Contacts

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Service Provider

A Service Provider is a company that provides

transportation services for freight in OTM

OTM retains information such as rates, schedules, and

equipment for all service providers so that it may

choose the best way to transport goods

OTM is also able to communicate with service providers

so that they may receive from/feed information to

OTM regarding their service offerings

New Rates

Schedules

Tender requests/acceptances

Service Provider

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Manage All Service Provider Information Rate Management

Manage All Service Provider Information

Division 1 Division 2 Division “n”

OTM – Contract and Rate Management

Rules and Regulations

Contract Commitments

Rates and Contracts

• Electronic Transfer via CSV

• Available Manual Edit and

Entry Screens

External Data Sources

• Manage Detailed Rate Structures

• Track Commitments

• Accurate Service Time Estimates

• Integrated with OTM Sourcing

Accurate Freight Settlement

Better Carrier Retention

Improved Shipment Optimization

Increased Equipment Utilization

Results

Equipment Types

Transportation Rate Management

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Rate Service

-Origin & Destination

- Mode

Rate Offering

-Origin & Destination

-Mode

-Carrier

Rate Record

$$

Rate Record

$$

Rate Record

$$

Rates

Rates are used by service providers to define the cost of a

transportation based service.

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Rate Inquiry

Rate Inquiry

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Equipment Groups & Equipment Group Profiles

Equipment Groups and Equipment Group Profiles

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Items, Commodities & Packaged Items

Items, Commodities and Packaged Items

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Items, Commodities & Packaged Items Example

Items, Commodities and Packaged Items Example

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Itinerary

Itinerary

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An itinerary determines the specific route for a shipment

Itinerary

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Order Management

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Order Management

Order

Orders represent the requirement to

move freight from one point to another

Order Management

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Planning &

Execution

Outbound Orders

Orders

Received

Inbound Orders

Purchase

Orders

EDI

Batch

Manual

BPEL XSL

Transport

Orders

Sales

Orders

Interfacility Orders

Notice! …

Ready to Ship

• Integrate with any ERP, Order Management, Purchasing and other systems to manage transportation orders

• Oracle Integrations: E-Business Suite, JD Edwards EnterpriseOne, Siebel CRM

Transportation Order Management

Manage All Transportation Orders

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Transportation Planning

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Support a Wide Range of Optimization Needs –

Simple Rules Based Planning to Complex Cost & Constraint Based Optimization

• Route

• Mode

Optimized

Decisions • Timing

• Equipment

• Multi-Leg Multi-Mode Consolidation

• Common Leg Consolidation

• Multi Stop Consolidation

• Multi-Tier Networks

• LTL Consolidation

• Continuous Moves

Algorithms

• Consolidation

• Service Provider

Engines

& Rules

• Service Time Calculation

• 3-Dimensional Container Optimization

• Itineraries & Profiles

• Carrier Capacity

• Throughput

• Rating

Transportation Operational Planning

Maximize Fulfillment Service, Minimize Transportation Costs

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Areas of Optimization

• LTL Consolidation o Multiple orders to single shipments

• Multi-Stop Consolidation o Multiple pick-ups or deliveries per shipment

• Multi-Tier Networks o Dynamic Routing and Consolidation (Pool Points & Cross-docks)

• Multi-Leg, Multi-Mode o Multiple modes of shipments for single order

o Multiple modes of shipments for multiple orders

• Continuous Moves o Existing en-route shipments tied with newly planned shipments

• DC/Warehouse Planning o Dock Door and Warehouse picking balancing

Areas of Optimization

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Route Optimization

3-Dimensional Load Configurator

Consolidation

Multi-Leg, Multi-Mode Itineraries

Planning: Shipment Optimization – Minimize Costs

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• Plan multiple orders together to achieve optimal transportation

solutions and consolidation opportunities

• Planner has option to execute on shipments or re-plan orders in

a future bulk plan

Bulk Plan

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• Automate the dock appointment scheduling process

• Account for facility operations constraints – dock availability, operating hours, throughput

• Partner collaboration – carriers & suppliers can manage their appointments online

• User productivity – intuitive user interface with drag & drop appointment setting

• Integrate with Warehouse Management System to optimize operating efficiency

Planning: Dock Appointment Scheduling/Yard Management

Improve Facility Efficiency and Carrier/Supplier Collaboration

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Transportation

Execution

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Transportation Execution Your Company Service Providers

• Support for all modes:

• Ocean, Air, LTL, TL, Rail

• Electronic (EDI), Internet, and wireless

communication

• Automated dock scheduling and partner

collaboration

EDI 204: Load Tender

Review &

Approve

Shipment Tender

Accept

Tender Transport Deliver Pick-up

Sched

Appt

Internet: Delivered

Wireless: Picked-up

EDI 214: Delayed

Transportation Execution

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Shipment Execution

• Support for manual intervention before and after planning, as well as

during execution

• Change carriers

• Split / merge shipments

• Divert / re-route en-route

• Tendering / Booking

• Bulk, Individually, or Automated

• Electronically (XML/EDI), E-mail / Web, or Manually

• Response required or notification only

• Considers office hours, time-outs, re-tenders, and dispatch locations

• Shipment Status Updates

• Electronically or via web user interface.

• Automatically “re-drive” shipment to determine new ETAs

• Alerts users of new dates

• Trigger customized workflow to implement your specific business rules

Shipment Execution

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Secure Resources – Many Options Tenders can be blasted out to

several carriers for bidding or

expedited service

Carriers Can be notified via

Email, EDI, or Fax Tender Decline or time-out

will automatically tender to

the next carrier

Secure Resources – Multiple Options

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Visibility & Event Management Alert!

Shipment is 12 hours behind schedule

Alert: Shipment arrived late at

HK Port Kansas City

DC 1

US Port

Vessel Carrier China Factory HK Port Shipment to HK

• Planned vs. actual milestone tracking

• Proactive monitoring and notifications

• Automated, event-driven processes

• Track & Trace history

Visibility and Event Management

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Freight Settlement

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Support Settlements & Payments Based on Plans Generated in TM or Other System

*Value-Added Tax and Non-Freight Related Charges

Freight Payment, Billing and Claims

Carriers

Financial System

Shippers /

Customers

• Allocate costs to orders & order lines for billing

• Apply appropriate GL codes based on order characteristics

• Calculate profit margin for each shipment

• VAT & NFRC*

• AR & AP Vouchers

• Allocated costs

Invoices

via web

or

integration Pay based on actual shipment activity and contract rates Au

to-P

ay

Payments

Ma

tch

& P

ay

Match, validate, and pay invoices; flag exceptions

Payments

Bills

via web

or

integration

• Intra-company cost

transparency

Freight Payment, Billing and Claims

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Business Intelligence

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Transportation Business Intelligence Measure Performance, Take Action

Drill to

Transaction

Level

KPI

Dashboard

Drill to

Additional

Detail

Measure

Against

Targets and

Benchmarks

Transportation Business Intelligence

KPI

Dashboard

Measure Performance, Take Action

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Lessons Learned

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Lessons Learned

OTM is highly configurable and can be tailored to fit your business processes.

While this flexibility is beneficial, custom configuration can add complexity and

hinder system performance.

Domain management – carefully layout a domain structure before beginning

configuration and set clear standards on what data will be housed in each

domain.

Know your master data – only load what you need. This will save you

processing time, and will help to keep your database clean.

Leverage Oracle resources – Oracle posts a lot of useful information on their

support site and there are numerous OTM wikis/blogs that also have lots of

helpful tips.

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Useful Links

• Learn more about OTM at the following sites:

– http://www.oracle.com/us/products/applications/ebusiness/logistics/018756.htm

– http://www.otmwiki.com

– http://otmfaq.com

– http://otmsig.com

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Contact Information

Chris Gumz

Sr. OTM Analyst

Christopher.Gumz@xpologistics.com

(248) 936-1427

To learn more about XPO Logistics, please visit

http://www.xpologistics.com

Or call

(855) SHIP-XPO (744-7976)

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Q&A